School Board's Accounting Methods Faulted

September 26, 1995|By DERRICK STOKES; Courant Staff Writer

EAST HAMPTON — The chairman of the board of finance accused the school board Monday of ``incorrect accounting methods and questionable management'' for not paying its medical claims in the fiscal year in which they are incurred.

Tom Pastorello, finance board chairman, issued a press release saying the school board paid its expenses for 1994-95 out of the current budget for the 1995-96 fiscal year. The expenses for the 1994-95 year totaled $160,000. The school board budgeted $161,131 for the 1995-96 year to pay for last year's expenses.

Marianne Carr, the school district's controller, said the board has been paying in such a manner for a decade. The expenses are paid in July and August, after the start of the fiscal year.

``Now, all of a sudden it's controversial,'' she said.

``His problem with it is that it's crossing fiscal years,'' she said of Pastorello, who is running for re-election to the finance board.

Carr said the school board pays employees an annual stipend if they decide not to be covered through the school district's medical program. It is called the insurance reimbursement option, and it is included in the contracts of all school employees, Carr said.

According to Carr, the town's auditor has said the district's accounting methods are not wrong, but the process could be done differently.

School Superintendent John DeGennaro said he spoke to Pastorello Monday morning about the district's accounting methods, and specifically, its medical claims budget.

``We are to keep doing what we have been doing,'' DeGennaro said.

The superintendent said Pastorello is concerned about the financial statement of the town, which will be inspected by auditors at the end of the year.

In addition to his concern about the insurance reimbursement, Pastorello also complained about the district's depleted reserve fund. The district withdrew $55,986 from the fund to pay for medical claims of its employees.